How Do Investment Companies Fare Under Obama and Trump Fiduciary Rules?

Authors

  • Cliff R. Moll University of Wisconsin Oshkosh
  • Robert A. Kunkel University of Wisconsin Oshkosh
  • Kristine L. Beck California State University, Northridge
  • Bruce D. Niendorf University of Wisconsin Oshkosh

DOI:

https://doi.org/10.33423/jaf.v18i7.462

Keywords:

Accounting, Finance, DOL, Capitalization

Abstract

In 2015 President Obama urged the Department of Labor (DOL) to update its fiduciary regulation. A major factor driving this decision was a White House Council of Economic Advisers report showing that investment companies collect $17 billion annually in conflict-of-interest fees from American workers. Using an event study methodology, we find investment companies, on average, experience a large decrease in market capitalization from the Obama Effect. Conversely, the 2016 Trump presidential election signaled a continuation of the fees and a rollback in government regulations. The investment companies, on average, experience an astounding increase in market capitalization from the Trump Effect.

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Published

2018-10-01

How to Cite

Moll, C. R., Kunkel, R. A., Beck, K. L., & Niendorf, B. D. (2018). How Do Investment Companies Fare Under Obama and Trump Fiduciary Rules?. Journal of Accounting and Finance, 18(7). https://doi.org/10.33423/jaf.v18i7.462

Issue

Vol. 18 No. 7 (2018)

Section

Articles

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